From safe savings to big bangs – german fiscal federalism during and between economic crises
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Christian Bender [1] ; Fabio Botta [1]
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[1] University of Leipzig
University of Leipzig
Kreisfreie Stadt Leipzig, Alemania
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- Localización: Revista "Cuadernos Manuel Giménez Abad", ISSN-e 2254-4445, Nº. Extra 9, 2023 (Ejemplar dedicado a: FISCAL FEDERALISM AND SUBNATIONAL FINANCE AFTER THE GREAT RECESSIOND AND COVID-19), págs. 76-97
- Idioma: inglés
- Enlaces
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Resumen
Since 2007, the Federal Republic of Germany has experienced various major and minor crises. Of these, the financial crisis from 2007 and the Covid crisis were particularly severe. Yet German federalism seems to have weathered the tests of these two economic crises well. Although the crises occurred at a time when the financial relations between the governmental entities were being fundamentally reorganized. In the case of the Covid crisis in particular, the exact long-term fiscal burdens on the various federal levels will not be known for years to come. While public budgets are counteracting the crisis, they are not fully recovering, so that the fiscal burdens are accumulating. This increasingly limits the state’s room for maneuver, and tendencies towards a polycrisis are becoming visible. This article shows what influence the respective crises had on the interaction between the federal, state and local governments and how the fiscal system adapted to the new economic environment.
